Citi hikes PT, rating on Australia's Reliance Worldwide on strong sales

Reliance Worldwide

28/04/2023 01:07

** Analysts at Citigroup hike price target on Reliance
Worldwide Corporation Ltd  RWC.AX  to A$4.10 from A$3.00, and
upgrade rating to "neutral" from "sell"
    ** The plumbing products and services firm on Thursday
reported 9M23 net sales of $932.22 mln, up 10.3%
    ** Rise in net sales due to higher sales in Americas and
EMEA, with Americas sales up 18.5% in 9M23
    ** Adds that it expects to realise $15 mln in cost savings
in FY24
    ** Citi hikes its FY23 core net profit view by 17.3% to
$151.3 mln, and by 26% to $157.1 mln for FY24
    ** Brokerage says each segment tracking materially ahead of
consensus 2H23 expectations
    ** Adds that it sees strong combination of sales momentum
and declining input costs in the near-term
    ** 11 of 17 analysts rate the stock "buy" or higher, five
"hold" and one rates it "strong sell" or lower; their median PT
is A$4.10 – Refinitiv data
    ** RWC up 32.8% this year, as of last close, vs a 3.6%
increase in the ASX 200 benchmark index  .AXJO  

 (Reporting by Sameer Manekar in Bengaluru)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))